Welcome to News & Events

Published on December 20, 2011, by in Industry News.

Welcome to The Fraud Practice’s FraudBlog; your source for updates on current events, commentary and best practices related to the eCommerce CNP payments and fraud industry.

Be sure to signup to see all of our content to include our free monthly FraudBlog Newsletter.


Meet with The Fraud Practice at the Upcoming CNP Expo in Orlando, Florida

If you are attending the CNP Expo May 18-21 then be sure to see The Fraud Practice at booth number 418 in the Exhibit Hall. For those who would like to find out more about our online training certification programs, we will be giving out free copies of David Montague’s Essentials of Online Payment Security and Fraud Prevention book with valuable online training discount coupons inside.

There are a limited number of books available, so be sure to stop by The Fraud Practice’s booth before we run out. In addition to visiting us at the booth, you may want to attend the May 20th breakout session titled Fraud on the Move, moderated by The Fraud Practice’s Justin McDonald, Sr. Risk Management Consultant.

If you’d like to schedule a time to meet with one of our consultants at the CNP Expo, or just be sure we hold you a copy of the book, please contact us today.

If you haven’t yet registered for the CNP Expo and would like to attend, you can use The Fraud Practice’s discount code below.


CNP Expo



Leveraging Identity Document Verification in the Mobile Channel

More and more consumers, as well as fraudsters, are browsing, buying and banking via their mobile devices. While this has benefited consumers with increased convenience it has also created new challenges for merchants, financial institutions and others that want to reach customers in the mobile channel, as they now must also manage new risks.

In this feature article The Fraud Practice discusses the mutually beneficial relationship between mobile devices and identity document verification, focusing on how this risk management technique can be best utilized within the mobile channel and how mobile device technology has made identity document verification a more viable option for merchants and other organizations beyond financial institutions.

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The Mobile Payments & Fraud Survey: 2015 Report is Available Now

The Fraud Practice, Kount and have once again teamed up to bring you the third annual Mobile Payments & Fraud Survey. The 2015 Survey Report is now available and David Montague, Founder of The Fraud Practice, will discuss key findings along with Rich Stuppy, COO of Kount, and Steve Casco, CEO of, during a live webinar held later this month.

As the mobile channel continues to grow and mature it seems fraud is keeping pace with increasing mobile transaction volumes. Unfortunately, the 2015 Mobile Payments & Fraud Survey found that many organizations are not taking the necessary measures to understand and combat fraud in the mobile channel as less than 40 percent of merchants differentiate or track mobile from traditional eCommerce fraud losses. Many more survey findings are detailed in the third annual installment of the Mobile Payments and Fraud Survey, which continues to track and measure the priorities, obstacles and capabilities of many types of organizations operating in the mobile channel.

In addition to the annual survey report, The Fraud Practice, Kount and will be hosting a webinar to discuss key survey findings and issues impacting the mobile channel. This webinar, titled Trends Shaping the Mobile Industry for 2015, will be held May 28th at 11 AM ET. All webinar attendees will be entered in a drawing to win one of 10 free online training courses from The Fraud Practice, a $120 value.

Request you free copy of the 2015 Mobile Payments & Fraud Survey Report today

Register for the webinar here


Over 44 Percent of Online Payments in the UK are Made via Mobile

According to data from Adyen based on client transaction data, more than 27 percent of online payments made in the first quarter of 2015 were made using a mobile phone or tablet. The United States is slightly below the global average in terms of the share of online payments made from a mobile device while the United Kingdom leads all nations in this department with over 44 percent of online payments coming from mobile devices.

The mobile channel continues to grow both in terms of mobile contactless payments at the point-of-sale and with mobile eCommerce transactions that take place via mobile web browsers or mobile apps. It is important for merchants to reach consumers and provide the opportunity for them to transact in the channels they prefer to use. Recent data from payment provider Adyen underscore the importance of the mobile channel as it continues to grow and as consumers increasingly make remote, online payments from their mobile devices.

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Pitney Bowes Acquirers Global eCommerce Provider Borderfree

Borderfree, a publicly traded company providing site localization, global logistics services and other solutions for eCommerce merchants that are expanding sales internationally, was acquired by global technology company Pitney Bowes for $395 million in early May.

President and CEO of Pitney Bowes, Marc B. Lautenbach, stated that this acquisition “not only makes sense for our clients, it accelerates our strategic vision to grow our company through expansion of our digital commerce businesses.” The two companies offered complimentary cross-border eCommerce solutions and by combining their capabilities Pitney Bowes seeks to further help clients by reducing the complexities of cross-border eCommerce.

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The Fraud Practice Releases New White Paper Helping Merchants Build the Business Case to Consider Outsourcing Manual Reviews

Since many merchants rely on manual reviews for effective risk management they should be performed in the most cost effective way. This white paper is focused on building the business case for making considerations around maximizing the net benefit of performing manual reviews, whether they are performed internally, by a third party or a combination of both.

The Fraud Practice’s latest white paper, titled “Building the Business Case: When it Makes Sense to Outsource Manual Reviews”, seeks to help organizations build out this business case and is available for free today.

Request your copy of this free white paper.


Register for Webinar Discussing Key Findings from 2nd Annual Consumer Authentication Survey on April 16th

The Fraud Practice and CardinalCommerce are hosting a webinar on Thursday April 16th at 2:00 PM ET / 11:00 AM PT to discuss the most significant findings and implications from this year’s Consumer Authentication Survey. All who register for the webinar will receive a free copy of the Use of Consumer Authentication in eCommerce white paper.

Now in its second year, the Consumer Authentication Survey once again collected industry perspectives regarding the market sentiment, use and implementation of Consumer Authentication programs such as Verified by Visa and MasterCard SecureCode. After setting the baseline with the inaugural Consumer Authentication Survey, the second annual edition provides insight on who is using Consumer Authentication today, how they are using it, what the industry thinks of this technique and why, as well as what has changed in the past year.

Whether or not Consumer Authentication programs are used or supported by an organization today, the experience and information shared by others in the industry can provide useful context and insights. The important trends, key survey findings and market implications from the 2nd annual Consumer Authentication Survey will be highlighted in the April 16th webinar hosted by CardinalCommerce and The Fraud Practice, while full survey results are detailed in the white paper that will be provided to all attendees.

Register for the webinar


Merchants Should Already be Planning for Increased Fraud Attempts Post-EMV

According to forecasts from Aite Group nearly all credit cards issued in the U.S. will have EMV capabilities by 2018 when CNP credit card fraud losses are expected to reach $6.4 billion in the United States. As EMV cards become commonplace among U.S. cardholders it will make counterfeit card fraud more difficult and drive more fraud attempts to the online channel. CNP merchants should already be preparing for increased fraud attempts, considering how it may impact manual review loads and if current risk management strategies should be supplemented with additional tools and techniques.

As EMV or Chip-and-PIN cards began to phase out magnetic-stripe payment cards in the UK, Canada and several other countries, fraudsters started migrating online and to other Card Not Present channels. While counterfeit card fraud in Canada fell from $245 million CAD in 2008 to $112 million CAD in 2013 after five years of chip cards, CNP fraud increased from $128 to $299 million CAD over this same time frame. Card Not Present fraud increased more than 300 percent in the UK following the rollout of Chip-and-PIN. A similar sequence of events is expected in the U.S. as banks issue EMV, or chip, cards to replace the less secure magnetic-stripe predecessors in time for the October liability shift deadline.

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How Manual Review Metrics Vary Across Small and Large Merchants

It can be difficult for merchants to really understand how well they are performing with manual reviews for online fraud management relative to their peers. In this FraudBlog post we look at merchant reported statistics from three surveys covering merchants of all sizes in North America and the United Kingdom highlighting major differences between high and low revenue e-tailers.

One key metric is the manual review rate, or number of transaction attempts that are queued for a manual review. This varies greatly by merchant volume as merchants processing tens or hundreds of million transactions per year cannot feasibly review a high portion of order attempts. Many start-up and smaller merchants, on the other hand, may review nearly any transaction that isn’t squeaky clean.

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© The Fraud Practice LLC 2012